N.Y. ride-hailing drivers file suit against Uber, allege they are owed millions in undercut wages

Ride-hailing drivers in New York City have filed a lawsuit against Uber that claims the company wrongfully deducted taxes from their paychecks and did not pay them the full income they earned from rides. The lawsuit was filed in federal court in Manhattan on Wednesday by the New York Taxi Workers Alliance, an organization with about 22,000 […]

‘I’m Addicted’; Why Food-Delivery Companies Want to Create Superusers

DoorDash, Instacart and others want to turn casual customers driven by discounts into repeat users who rely on their services regularly Food-delivery companies are racing to convert customers first lured by discounts into habitual, high-value users. Their challenge, in part, is to wring more revenue from customers like Jessica Knapik, a 31-year-old cosmetic tattoo artist […]

Instacart CEO apologizes for tipping debacle

On the heels of a recently filed class-action lawsuit over wages and tips, as well as drivers and shoppers speaking out about Instacart’s alleged practices of subsidizing wages with tips, Instacart  is taking steps to ensure tips are counted separately from what Instacart pays shoppers. In a blog post today, Instacart CEO Apoorva Mehta said all shoppers will now […]

Instacart faces class-action lawsuit regarding wages and tips

Instacart is facing another class-action lawsuit pertaining to the way it pays its independent contractors, NBC News reports. Instacart guarantees its workers at least $10 per job, but workers are alleging Instacart offsets wages with tips from customers. The suit alleges Instacart “intentionally and maliciously misappropriated gratuities in order to pay plaintiff’s wages even though Instacart […]

Delivery Startups Are Using Tips To Fulfill Pay Promises, And Customers Are Mad

Instacart customers who feel tricked by the grocery delivery company’s tipping policy are threatening to stop using the service. Last week, customers were surprised to learn that Instacart uses customer tips to cover its guaranteed $10 per delivery minimum payment to drivers, which means that in some cases, the more a customer tips, the less the company […]

Instacart and DoorDash’s Tip Policies Are Delivering Outrage

Delivery has always been a rough business. Since time immemorial, couriers have braved the elements, gotten by on meager wages and dealt with annoying customers, growling dogs and fifth-floor walk-ups, all for the chance of a big tip from a happy customer. But thanks to two Silicon Valley upstarts, even those tips are in doubt. […]

Why Instacart and Doordash workers don’t always receive the tips you give them

Tips paid to workers at on-demand delivery services including Instacart and Doordash are being used to substitute a portion of workers’ wages rather than directly boosting their income, according to online forums dedicated to gig economy workers, and reports to worker rights groups. While the companies insist they have been transparent with their workers about […]

Instacart and Amazon-owned Whole Foods are parting ways

Instacart  has announced this morning it will no longer be doing business with Whole Foods, a U.S. organic grocery chain the company launched a partnership with in 2014. This comes roughly one year after Amazon  closed its $13.7 billion acquisition of Whole Foods; Amazon, of course, has its own grocery delivery service, AmazonFresh. Currently, Instacart has 1,415 in-store shoppers, or […]

Instacart expands ALDI partnership

After pilot programs in Atlanta, Dallas, Los Angeles and Chicago were “overwhelmingly positive,” per Instacart  CEO Apoorva Mehta’s statement, the grocery delivery service has decided to expand its partnership with U.S. grocer ALDI. As of Thanksgiving, Instacart  users in 35 states and 5,000 ZIP codes will be able to fill their virtual carts with ALDI groceries. more

Equity podcast: Uber’s losing billions, Amazon lays off hundreds and somehow Instacart gets more money

Welcome to “Equity,” TechCrunch’s venture capital and tech business podcast. On this week, we were joined by Mike Ghaffary from Social Capital,who was the perfect guest because he used to run Eat24, when it was Yelp’s food delivery business. Food delivery is highly relevant to this week’s news. First up, we talked about Uber, which is […]